RMG 100 Study Guide - Final Guide: Warehouse Club, Stock Keeping Unit, Gross Margin

• School: Ryerson University
• Department: Retail Management
• Course: RMG 100
• Professor: Frances Gunn

Document Summary

Variety (breadth of merchandise) the number of different merchandise categories a retailer offers* Assortment (depth of merchandise) the number of items in a merchandise category (sku"s)* Each different item of merchandise is called a sku (stock keeping unit). Customers like wide variety, deep assortment, and a lot of service, but some customers appreciate having the retailer edit the assortment for them. Why don"t discount stores offer more services? (they appeal to a target segment that does not want to pay the cost for more service options. ) Concentrates on a limited number of complementary merchandise categories and provides a high level of service in a relatively small store. Level of service: high assortment/variety: narrow/deep price: high gross margin: high. 6,500 chain stores closed last year international council of shopping. Cheaper rents, shorter lease terms and fatter allowances from landlords for outfitting stores. Rents in new lease signing are 10. 4% lower on average than the asking price (reis, inc)